Shanghai Stock Market Falls Amid Regulatory Clampdown
28 Jul 2016

The Shanghai Composite Index fell 58.17 points today to its closing level of 2,992.00, for a decline of 1.91 percent. There was power behind the decline: Volume was very heavy by recent standards, at 280.16 million. Lately the Shanghai bourse has been handling volume between 150 and 175 million shares. The Index at one point had shed a 3.6 percent before recovering partway in the afternoon, as reports circulated of an upcoming regulatory clampdown on speculation, shadow lending and certain wealth management products. The ChiNext experienced its biggest loss over a month, and the Shenzhen fell 4.5 percent.

The Nikkei, however, moved almost as big in the opposite direction, up 1.72 percent on the announcement of a bigger-than-expected government stimulus package. The Bank of Japan is also issuing 50-year bonds for the first time in history. So today’s infants can still be paying off their parents and grandparents’ debts even after retiring from a 20 year career.

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